Many Companies Keep a Continuously Updated List of Inventory Levels

question 16

Multiple Choice

Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts. What is this type of inventory called?

• A) month-to-month inventory
• B) just-in-time inventory
• C) coordinating inventory
• D) perpetual inventory

---

Definitions:

Tax Incidence

The ultimate distribution of a tax burden.

Distribution

The process of making a product or service available for use or consumption by a consumer or business user.

Tax Shifting

Occurs when households can alter their behavior and do something to avoid paying a tax.

Avoid Paying

Strategies or actions taken to minimize or evade expenses, taxes, or other financial obligations.